The US chemicals industry is likely to follow BASF’s lead and cut production as the effects of the global economic slowdown feeds through the production chain, analysts said on Wednesday.

“It’s pretty much absolute misery in the sector right now and there’s a high risk of job losses here as well,” said Michael Judd of Greenwich Consultants in New Jersey. “Those cuts may actually be easier to make in the US than in countries such as Germany, where employment laws are more stringent.”